Federal BankMUMBAI: Federal Bank reported a net profit of Rs 1,297.6 crore for Q1FY27, up 37% from Rs 946.8 crore in the corresponding quarter last year, driven by higher net interest income and steady non-interest income.Net interest income expanded as interest earned rose to Rs 7,861.6 crore from Rs 7,150.8 crore a year ago, reflecting growth in advances, while interest expenses remained largely stable at Rs 4,537.6 crore. This supported a rise in operating profit to Rs 2,094.2 crore from Rs 1,707.0 crore. Non-interest income, however, moderated marginally to Rs 1,081.5 crore from Rs 1,164.5 crore, indicating a slight decline in fee, treasury or other income streams on a year-on-year basis.Operating expenses increased to Rs 2,377.3 crore from Rs 2,068.7 crore, led by higher employee and other costs, while provisions declined to Rs 353.2 crore from Rs 437.2 crore, aiding profitability.On the balance sheet side, total deposits rose 11.37% year-on-year to Rs 3,20,117.66 crore, while gross advances grew 14.94% to Rs 2,81,239.54 crore, supporting interest income growth. The bank also received approval to raise up to Rs 10,000 crore via domestic or overseas debt instruments, including AT1 and Tier II bonds, subject to approvals, to support future growth.